Fannie Mae-No Politics (FNMA)

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In the words of Judge Lamberth, Paulson's case was not ripe.

Paulson states:

"If we did not act immediately, Fannie and Freddie would, I feared, take down the financial system, and the global economy, with them."

My assumption is that after the crisis, Fannie and Freddie would no longer guarantee any loans from Banks that did not have the Captial to buy them back if they did not perform. By not purchasing them any longer, they would then "take down the financial system."